By Scout Nelson
The pace of US agricultural exports improved slightly in the third quarter of 2024 compared to earlier in the year. By September, export values totalled $126 billion, matching last year’s performance despite earlier declines. This steadiness marks progress compared to a 2% drop in the first six months and an 11% decline in 2023.
Corn exports were a significant factor in this turnaround. While down 7% through June, corn exports rebounded by September, increasing 3% compared to last year. Red meat exports also rose by 6%, with beef sales up 5% and pork sales increasing by 7%. Mexican demand for US beef contributed substantially, with purchases up 19%.
On the other hand, soybean exports fell by 23%, wheat declined by 4%, and animal feed and oil meal exports dropped by 10%. However, export volumes of major commodities like corn (+40%), wheat (+22%), red meats (+4%), and oil meal (+4%) were up, showcasing resilience in bulk shipments.
Signals for future exports remain mixed. Challenges such as a strong dollar, higher shipping costs, slower global economic growth, and geopolitical tensions may hinder growth. Additionally, competition from other exporting nations adds pressure. However, strong demand from countries like Mexico, Japan, and South Korea offers optimism.
A recent surge in corn purchases provides a positive outlook. "In the last four weeks [October into November], corn export sales have increased more than 100 million bushels per week, more than three times the typical five-year average pace,” according to an agricultural economist.
Despite these gains, concerns about front-loaded purchases and potential tariffs on agricultural exports raise uncertainties for 2025. Maintaining competitiveness and navigating trade policy will be critical to sustaining growth in the US agricultural export sector.
Photo Credit:istock-pixeldigits
Categories: Nebraska, Crops, Corn, Soybeans, Wheat